Payment amount reduction may be available for those who qualify. Federal student loan repayment options are:
The standard repayment plan offers the lowest overall cost. When you are due to start repaying, your federal student loans are automatically placed into this plan, and it will apply until you make a change. You make level monthly payments of principal and interest over the term of the loan.
Use Sallie Mae's monthly loan payment calculator to see how this plan might work for you.
Lower your monthly federal student loan payment through a lengthened repayment term. If you have more than $30,000 in FFELP loans, this option may be the best choice for you.
With graduated repayment on your federal student loans, your monthly payments are lower at the beginning of repayment and increase over the term of the loan.
You can choose to make payments that may be as low as interest-only for up to four years. Payments for the remaining term will then be higher.
Payments on your federal student loans are based on a percentage of your monthly income — from 4% to 25% — as long as you pay at least the interest that accrues every month. In certain circumstances, payments can be less than interest through the use of reduced payment forbearance.
Still undecided? Use our monthly loan payment calculator to see which plan fits best.
Income-based repayment (IBR) gives customers an opportunity to make affordable payments on Stafford, Grad PLUS, and most federal consolidation loans (excluding those with Parent PLUS Loans). The federally mandated program is designed to assist those who have high student debt levels relative to their incomes.
IBR payments are based on discretionary income, which takes into account household size. Customers must demonstrate partial financial hardship to qualify for the IBR plan, which becomes available July 1, 2009. If you are interested in the IBR plan, please bookmark this page and return on July 1 to learn more and determine if you qualify for IBR.
Private student loan programs
Eligibility for Sallie Mae private student loan repayment plans may vary by loan type, loan balance, and disbursement date.
The Sallie Mae Smart Option Student LoanSM is first disbursed June 1, 2009 and later requires monthly interest-only payments during the in-school and separation periods. Check the terms of your loan's specific Promissory Note and log in to Manage Your Loans to see if your loan status shows repayment. If so, and you are enrolled in school, then you are not eligible for other repayment options at this time.
Sallie Mae Smart Option Student Loans first disbursed before June 1, 2009 may be eligible for graduated repayment to lower the initial monthly loan payments.